 The impact of tax digitalization on corporate salary structuresWei Wei, Yan Song and Ruifeng Jin Finance Research Letters, 2024, vol. 64, issue C Abstract: Against the backdrop of rapid development in tax digitalization, exploring its impact on corporate salary structures has emerged as a significant topic in the realms of China's economy and business management. This study, set against the Phase III Golden Tax Project, utilizes data from Chinese listed companies between 2009 and 2021 to examine the effects of tax digitalization on corporate salary structures, particularly on the pay gap between executives and regular employees. The findings reveal that tax digitalization has narrowed this pay disparity. These results were further validated through robustness tests. Mechanism tests indicate that this effect is primarily achieved through improving information asymmetry and reducing agency costs. Moreover, the study discovers that tax digitalization has a heterogeneous impact on the pay gap across companies of different sizes and ownership types. Finally, the paper proposes policy recommendations based on these findings. Keywords: Tax administration digitalization; Pay gap; Listed companies; Phase III golden tax project (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:64:y:2024:i:c:s1544612324004380 DOI: 10.1016/j.frl.2024.105408 Access Statistics for this article Finance Research Letters is currently edited by R. Gençay More articles in Finance Research Letters from Elsevier |
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